June 27, 2012
Washington, DC – Commodity Futures Trading Commission Chairman Gary Gensler today issued the following statement:
“People taking out small business loans, student loans and mortgages, as well as big companies involved in complex transactions, all rely on the honesty of benchmark rates like LIBOR for the cost of their borrowings. Banks must not attempt to influence LIBOR or other indices based upon concerns about their reputation or the profitability of their trading positions.
“The CFTC regulates futures and swaps transactions that are regularly priced based on benchmark rates like LIBOR, Euribor and other indices. The CFTC has and will continue vigorously to use our enforcement and regulatory authorities to protect the public, promote market integrity, and ensure that these indices are free of manipulative conduct and false information.
“I commend the Division of Enforcement staff for their hard work on this case.”
Last Updated: June 27, 2012